Facebook earnings and mobile ad revue boosts shares 20%

Facebook has reported second-quarter revenue of $1.81bn, up 53% compared with the same period a year ago and above analysts’ estimates

Facebook has reported second-quarter revenue of $1.81bn, up 53% compared with the same period a year ago and above analysts’ estimates of $1.62bn.

The better-than-expected revenue, and an increase in mobile ad revenue by 10% from the first quarter to $656m to make up 40% of the total ad revenue, has boosted investor confidence.

Investors in the social networking site are looking for continued strong growth in mobile revenues, as most users now access Facebook using mobile devices.

Since its disastrous IPO in May 2012, founder and chief executive Mark Zuckerberg has repeatedly stated that serving mobile users and advertisers is Facebook’s top priority.

The price of Facebook shares jumped 20% to $31.81 in after-hours trading, according to the Guardian.

"We've made good progress growing our community, deepening engagement and delivering strong financial results, especially on mobile," said Zuckerberg.

"The work we've done to make mobile the best Facebook experience is showing good results and provides us with a solid foundation for the future," he said in a statement.

Facebook reported a second quarter profit of $562m and net income of $333m, compared with a loss of $157m in the same period a year ago.  

Income from operations was $562m, compared with a loss from operations of $743m in the second quarter of 2012.

Facebook reported that the number of daily active users reached 699 million on average for June 2013, an increase of 27% year-over-year.

Monthly active users reached 1.15 billion as of 30 June 2013, an increase of 21% year-over-year.

Mobile monthly active users increased 51% in the past year, reaching 819 million as of 30 June 2013, while mobile daily active users reached 469 million on average for June 2013.

“We now have more daily actives on mobile than on desktop. Nearly half a billion people use Facebook on their phones everyday and soon we’ll have more revenue on mobile than on desktop as well,” said Zuckerberg in an earnings conference call.

“This progress is the result of investments we started making more than a year ago and in some cases years ago,” he said.

Looking ahead, Zuckerberg said he would like Facebook to achieve the goals of connecting everyone and helping to build the knowledge economy.

 

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